Waste heat recovery to accelerate expansion of data centers

02.04.2026

Source: E & M powernews

Waste heat specialist Orcan Energy is expanding into the market for AI data centers. Waste heat recovery is to partially replace grid connections and additional turbines.

The Munich-based provider Orcan Energy is expanding its business into AI data centers. The company is addressing bottlenecks in grid connections and supply chains for generation plants, the waste heat specialist announced on April 2. According to Orcan, the new offering aims to "solve the massive energy bottleneck in the hyperscale sector". Operators of large data centers are increasingly confronted with long waiting times that delay the expansion of capacities.

According to Orcan Energy, the waiting times for grid connections at important digital hubs are now up to ten years. Hyperscalers are therefore increasingly forced to generate the required energy directly on site using their own natural gas turbines. However, the delivery times for these can be up to three years. This is where the Munich-based company's new offering comes in. With Organic Rankine Cycle (ORC) technology, the company can enable data center operators to convert unused waste heat into base load energy.

ORC technology as a supplement to in-house generation

The systems convert waste heat from existing generation plants into electrical energy. According to the company, this allows up to 35 percent additional power to be provided on site. The core of the product range is the container-based "eP 1000 module". It achieves a net electrical output of 1 MW per unit. The system uses a turbine that is designed for fluctuating exhaust gas flows. The standardized design enables installation within a few weeks of delivery.

The additional power generation from waste heat changes the sizing of data center sites, Orcan added. Operators can reduce the number of primary aggregates required. In one example, the requirement falls from 15 to eleven gas turbines with a total output of 260 MW. At the same time, fuel consumption is reduced. For a comparable output, the plant requires around a quarter less fuel. The use of waste heat thus shifts the role of primary generation within the overall system.

According to the manufacturer, the ORC modules themselves are available within twelve months. Installation takes place within one month. Orcan Energy states an amortization period of less than four years.

Basically, the Orcan Energy modules - so-called ORC modules (Organic Rankine Cycle) - work like a steam power plant. Instead of water as the working medium, an organic, e.g. carbon-based liquid with a low evaporation temperature is used in the process. The liquid is heated with the help of heat exchangers and fed to the ORC modules to generate electricity.

Author: Heidi Roider